Hmm, I'm guessing it has something to do with time delay. Sound generated on the left, left ear hears it fractionally before the right, brain decodes time delay as sound generated from the left. Is good stuff tho, look forward to this kind of sound technology being built into music. Stereo eat your heart out.
Pink Floyd were messing about with holophonics in the eighties.
The track; get your filthy hands off my desert, from the album The Final Cut, has a perfect example of early
holophonic sound with a misslie flying from right to left (could be left to right, not heard it for a while) and works
very well with a descent speaker set up.